OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sSB-470

AN ACT CONCERNING A PILOT PROGRAM FOSTERING NEIGHBORHOOD SAFETY AND CREATING A SET-ASIDE PROGRAM FOR PARTICIPANTS IN THE PILOT PROGRAM, AND AUTHORIZING BONDING FOR RELATED PROJECTS.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 17 $

FY 18 $

Treasurer, Debt Serv.

GF - Cost

See Below

See Below

Policy & Mgmt., Off.

GF - Potential Cost

See Below

See Below

Note: GF=General Fund

Municipal Impact:

Municipalities

Effect

FY 17 $

FY 18 $

Hartford

Potential Cost

See Below

See Below

Explanation

The bill establishes a pilot program in the City of Hartford related to neighborhood safety, and requires the Office of Policy and Management (OPM) and the City of Hartford to submit a report concerning the program. It specifies that the program will be funded by state, Federal, and private sources. However, it does not delineate the specific responsibilities of OPM or the City of Hartford, nor does it appropriate any state funding for the program.

The bill requires the Hartford public schools to develop a system to identify at-risk children and ask parents' permission for those children to participate in the pilot program. There is a potential cost of less than $5,000 to the Hartford public schools to notify parents that their children are eligible to participate in the program.

The bill requires Hartford, when awarding a municipal public works contract associated with certain projects, to inquire whether the bidder contributes to the pilot program. It also requires a contractor awarded such a contract to set aside an amount for the pilot program. This potentially increases the cost of certain public works projects in the City of Hartford.

The bill authorizes a total of $1 million in General Obligation bonds. The total General Fund debt service cost for principal and interest payments to bond this amount over 20 years at a 4.5% interest rate is approximately $1.5 million (comprised of $1 million in interest and $0.5 million in principal). The debt service cost is anticipated to be approximately $95,000 in each of the first two years. The timing of this cost will be dependent upon when the State Bond Commission allocates the funds and bonds are issued to support the programs.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.